5.0% GDP!

This is the fastest pace of growth since Q3 2003. This was also
much stronger than the 4.3% expected by economists.

"The increase in real GDP in the third quarter primarily
reflected positive contributions from PCE, nonresidential fixed
investment, federal government spending, exports, state and local
government spending, and residential fixed investment. Imports,
which are a subtraction in the calculation of GDP, decreased,"
the BEA said.

Personal consumption growth was revised up significantly to 3.2%
from 2.2%.

"The consumer was spending an enormous amount through September
before they got their gasoline price tax cuts," Bank of
Tokyo-Mitsubishi's Chris Rupkey said. "No wonder consumer
sentiment is so high, the consumer is flush with cash, there are
2.7 million more consumers this year courtesy of new nonfarm
payroll jobs, and they are out spending with abandon."

GDP skeptics often point to fluctuations in inventories and trade
as factors distorting the truth. BMO Capital's Jennifer Lee notes
that all of the popular adjusted GDP metrics still hit multiyear
highs. From Lee's note:

"The solid labor market performance should translate into further
income gains going forward, which should continue to support
household spending in Q4, along with extra income generated from
lower gasoline price," BNP Paribas' Bricklin Dwyer said.